02-11-2009, 12:02 PM
<!--quoteo(post=17280:date=Feb 11 2009, 09:51 AM:name=BT)-->QUOTE (BT @ Feb 11 2009, 09:51 AM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=17277:date=Feb 11 2009, 09:36 AM:name=rok)--><div class='quotetop'>QUOTE (rok @ Feb 11 2009, 09:36 AM) <{POST_SNAPBACK}><!--quotec-->Put me in the camp that doesn't believe the stimulus will do much to avert crisis. We're headed for rougher times, and I'm not advocating doing nothing, but the record of Keynsian tactics or even Supply Side remedies being used as quick fixes for sick economies is spotty at best. People don't want to admit that it took almost 20 years to get out of the Great Depression, so believe me when I say that I wish the President well, but I have my doubts.<!--QuoteEnd--><!--QuoteEEnd-->
The thing is Rok, I think most economists agree with you. Things are far too gone for a quick fix. The stimulus won't "fix" anything, but it might help avert a depression. I think even Obama would agree with that.
<!--QuoteEnd--></div><!--QuoteEEnd-->
And I agree with you that some sort of spending/tax bill is going to be helpful in the short-term. What I'm still concerned about is that this was a capital/credit markets induced crisis, and I haven't seen much proposed in terms of new regulatory structures that would prevent this from happening again in another 10 years. What we're doing right now is trying to spend, cut taxes and interest rates and hope for the best. Those things won't hurt, you have to admit they also played a big part in creating the mess that we're currently in. I'm not saying not to do these things right now, because any type of cash infusion into the economy will have an effect (we are of course talking around 1-1.3 trillion including interest or 10% of the GDP), but I just would like to see more regulatory reforms and new safeguards put in place that would lead me to believe that this doesn't happen again. TARP 2.0 doesn't really address the core of the problems either, but I guess it's a start.
The thing is Rok, I think most economists agree with you. Things are far too gone for a quick fix. The stimulus won't "fix" anything, but it might help avert a depression. I think even Obama would agree with that.
<!--QuoteEnd--></div><!--QuoteEEnd-->
And I agree with you that some sort of spending/tax bill is going to be helpful in the short-term. What I'm still concerned about is that this was a capital/credit markets induced crisis, and I haven't seen much proposed in terms of new regulatory structures that would prevent this from happening again in another 10 years. What we're doing right now is trying to spend, cut taxes and interest rates and hope for the best. Those things won't hurt, you have to admit they also played a big part in creating the mess that we're currently in. I'm not saying not to do these things right now, because any type of cash infusion into the economy will have an effect (we are of course talking around 1-1.3 trillion including interest or 10% of the GDP), but I just would like to see more regulatory reforms and new safeguards put in place that would lead me to believe that this doesn't happen again. TARP 2.0 doesn't really address the core of the problems either, but I guess it's a start.